Mixed Tone in Livestock Markets
Boxed beef continues to fall. Choice beef is now more $100.00 of the May 12 high. Primal rib and loin sections have been holding together compared to chucks and round but Thursday primal rib sections were down $8.80 from Wednesday and loin sections were off $12.98. All primal Choice and Select cuts were down Wednesday except choice chucks up $2.03 and select briskets up $3.99.
Volume on live cattle, feeder cattle and lean hogs is drying up. Spec spreading makes up the majority of trading. Cash cattle prices are posted but are taken with a grain of salt. Often when volume dries up, it isn’t long before there is a big move and often a reversal as algorithms take advantage of the small traders in the market.
Pork in China prices continued to fall last week, with supply exceeding demand, showed official data, reports “Xinhua” agency. To mitigate the impact of the new coronavirus pandemic, China has increased financial support, including grants and loans, the main producing districts of pigs to restore production.
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